Question 806:

• JAMB 1986

The revenue accruing to the seller of commodity X as a result of a fall in price will

A. Increase `
B. Fall
C. First fall but will increase later
D. Remain unchanged

Question 807:

• JAMB 1986

Which of the following is an important function of prices in a market economy?

A. Ensuring that resources are used in the most efficient manner
B. Ensuring an equitable distribution of goods and services
C. Ensuring that all industries are perfectly competitive in the long run
D. Equating level of purchases with level of needs

Question 808:

• JAMB 1986

One major difference between monopoly and perfect competition is that?

A. The perfect competitor is a price taker while the monopolist determines his own output
B. Homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist
C. Sellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist
D. There is free entry and exist in perfect competition but no free exist in monopoly

Question 809:

• JAMB 1986

A producer sustains a loss in the short run if

A. Marfinal revenue is less than price
B. Price is less than average cost
C. Average variable cost is less than average cost
D. Marginal cost is less than marginal revenue

Question 810:

• JAMB 1986

A monopolist will practice price discrimination in two markets if?

A. The cost of separating the markets is large
B. The markets have different elasticities of demand
C. There is free flow of information in the two markets
D. There is a patent of the commodity